Abstract
In an infinite horizon inventory and sales model, we show that the seller's unique strategy exhibits increasing prices under general conditions on the revenue function. An increasing discount rate leads to an increase of the time interval between order times, but an increase in batch size has an ambiguous effect.
Original language | English |
---|---|
Pages (from-to) | 371-376 |
Number of pages | 6 |
Journal | Operations Research Letters |
Volume | 45 |
Issue number | 4 |
DOIs | |
Publication status | Published - Jul 2017 |
Keywords
- Dynamic pricing
- Economic order decision
- Inventory
- COORDINATING INVENTORY CONTROL
- DEMAND
- STRATEGIES
- MODEL